COMP, the native token of the DeFi lending protocol Compound Finance, has attracted a lot of attention after its positive price performance in the last day. According to CoinMarketCap data, COMP rose 11.03% in 24 hours, emerging as the market’s top daily gainer.
This increase in price is very important, because COMP has recorded some price drops in the last few days, which may have triggered concerns for many of its investors after the unusual, strong token form in recent weeks.
COMP To Break Key Resistance Levels?
In the third week of June, COMP began an incredibly strong run that saw the DeFi token gain more than 125% to trade as high as $69.15 on July 4.
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However, after reaching this price level, COMP came under significant selling pressure, losing 9.63% of its market value in the last week before experiencing a recent price increase today .
Looking at its 4-Hour Chart, its Relative Strength Index – a tool for measuring the flow and reversal of price action – is set at 53 but is currently rising to the overbought zone which means that the current that price increase may last for a while.
In tandem, the token’s Moving Average Convergence Divergence (MACD) line crossed just above the signal line, which is also interpreted as a bullish signal.
Analyzing its price movement, COMP is facing major resistance in the $70 price zone as the token has failed to breach this barrier twice in the last three weeks.
However, if market bulls are able to sustain the current buying pressure that is driving this price level, COMP is likely to continue its earlier upward trajectory.
If the token fails to break the $70 price zone, however, it will likely fall and retest the $50.00 price mark, which currently represents the approaching support level.
At the time of writing, Compound (COMP) was trading at $58.62, down 0.60% in the last hour. The token’s daily trading volume amounted to $136 million, which gained 216.75%.
COMP Trading At $58.56 On The 4-Hour Chart | Source: COMPUSD Chart On Tradingview.com
Total Crypto Market In The Red
Amidst COMP’s market gains, most of the crypto market experienced a slight loss, with the total crypto market cap down 0.77% in the last 24 hours, according to CoinMarketCap data.
Bitcoin (BTC), the leading cryptocurrency and market leader, fell by 0.60%, while Ethereum (ETH) also saw its market price drop by 0.56%.
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Other famous cryptocurrencies such as Dogecoin (DOGE), Solana (SOL), and Litecoin (LTC) also experienced similar fates, losing to the tune of 1.86%, 3.54%, and 3.80%, respectively.
Featured Image From Economic Times, Chart From Tradingview